Coke producer faces double expected carbon tax bill

Australia's only independent coke producer says its carbon tax bill this year will be about double what it originally thought.

The Illawarra Coke Company says it now expects to face a $500 000 liability compared to the $250 000 bill it anticipated just before the tax came in.

The 94.5% tax credit for trade-exposed businesses is based on the average carbon costs across an industry.

And the managing director of the Illawarra Coke Company, Rex Wright, says the company based initial calculations on its own emissions before the industry average was revealed.

"We thought we were pretty much around the average but it's turned out somewhat different so it just makes it a little bit tougher for us that's all and probably puts on hold a few of the projects we we have got planned for the next year or two," he said.

Rex Wright says the company was planning to conduct research into emissions-reducing technologies, such as using waste heat to generate electricity.

But the higher than expected tax bill has put those studies on hold.

The company is meeting with officials from the Department of Industry, Innovation, Science and Research next Thursday to discuss the possibility of extra government assistance to help the company reduce its carbon footprint.

Rex Wright says the company accepts the carbon tax is now a part of life.

"You don't have any option do you? And we do have to get on to it and I suppose it's no different to households who are maybe now paying more for electricity and other such things ... maybe something has to suffer or you spend less in other areas," said Mr Wright.